Taxation (Cross-border Trade) Bill

Debate between Hilary Benn and Chris Leslie

3rd reading: House of Commons & Report stage: House of Commons
Monday 16th July 2018 Commons Chamber

[Mr Leslie]

My experience is very different in terms of the information I have. If we look across the range of goods as a whole, there are problems with rules of origin outside the customs union.

The second problem with the facilitated customs arrangement is that it breaches article 3 of the General Agreement on Tariffs and Trade—GATT—which is part of the World Trade Organisation rules. Article 3 is the national treatment principle, which says that we should not treat imported goods unfairly relative to domestically produced goods. Because of the track and trace requirements in the facilitated customs arrangement architecture, we will have to treat imported goods differently to those produced and made in the UK.

The third problem is that if we want to make free trade agreements with the rest of the world, the Government are shooting themselves in the foot with the facilitated customs arrangement because article 24 of GATT states that we have to eliminate substantially all trade barriers between constituent trade authorities. If the UK is having to collect tariffs on behalf of the EU, that introduces a barrier that will have to fetter future free trade agreements. I do not particularly believe we can get better FTAs beyond the customs union; I think our leverage as part of the EU is superior, but on a technical level a facilitated customs arrangement, I am afraid to say, is just not going to wash.

[Hilary Benn (Leeds Central) (Lab)]

On the important issue of rules of origin, which my hon. Friend has just raised, we have heard the argument from some people is that it is not a problem. If it is not a problem, then why do the Government, in paragraph 23 of the White Paper, state that the UK is proposing

“no routine requirements for rules of origin between the UK and the EU”?

[Mr Leslie]

Exactly. Presumably the Government think they can negotiate on that between the UK and the EU bilaterally, but actually that is not the way that this works. Under the WTO arrangements, we have to make sure we have the same application of rules as we would in other arrangements around the world.

A customs union is not just preferable; it is the only realistic option. The idea that the European Union is going to say, “Fine, we’re happy with you splitting the four freedoms” is for the birds. That is not going to happen, especially as populism is running riot worldwide. The EU feels very firmly that it wants to defend the international rules-based system. It feels very firmly that the four freedoms of the single market and the customs union are integral to it. The idea that Switzerland provides an example, when it has endured decades of constant treaty negotiations year after year after year—that is not a model Britain should seek to parallel.

The idea that we should simply hope that by focusing on the withdrawal agreement we can secure our future is also a fallacy. The notion that we will be able just to staple on to the back of this arrangement, on a few sides of A4, political statements on our future relationship with the EU is deeply dangerous. We have to make sure that we settle these issues—I know the former Brexit Secretary agrees on this particular point. The idea that what is said on one side of exit day will necessarily be enforced on the other side of exit day is just not true. There is no legal enforceability to any warm words about our future relationship. These issues have to be set out at this particular stage.

European Union (Withdrawal) Bill

Debate between Hilary Benn and Chris Leslie

3rd reading: House of Commons & Report stage: Second Day: House of Commons
Wednesday 17th January 2018 Commons Chamber

[Mr Leslie]

Don’t say “Hear, hear” in that way.

New clause 5 addresses a massive topic. It simply says, almost in the words of the Secretary of State for Exiting the European Union, that after we have left the EU, we should have the exact same benefits for the service industries in our country—including financial, legal and professional services—as we have now. The service sector accounts for some 80% of the British economy. During our consideration of the Bill, we have not yet really debated the implications for the service sector. It is often easier to talk about the trade in goods, because goods are tangible—they are physical, and we can imagine them crossing borders, going through ports and so forth—but in many ways we excel in our service sector, so new clause 5 would simply put into the Bill the commitment that Ministers have previously given that they would seek the exact same benefits.

[Hilary Benn (Leeds Central) (Lab)]

rose—

[Mr Leslie]

I do not have much time to go into new clause 5 and I shall try not to take too many interventions, but how can I resist my right hon. Friend?

[Hilary Benn]

Does my hon. Friend agree that on the question of services, never mind goods, this is probably going to be the first negotiation in human history in which a Government have gone into the process knowing that they will come out with a worse deal than the one currently enjoyed? The reason for that is the red lines that the Government have set for themselves. Does not that demonstrate what a profound error this has been, especially when we now know that the decisions on those red lines were taken without any assessment at all of their economic impact?

[Mr Leslie]

Absolutely; I could not have put it better myself. We currently have, in the shape of the single market, one of the finest free trade agreements available to any country anywhere in the world. It is frictionless and tariff-free and, of course, it offers great opportunities for those in the UK service sector to sell their services to 500 million customers. There was nothing about departing from the single market on the referendum ballot paper, so this is a ridiculous red line that the Government should not have put in place. I take this opportunity to gently ask my right hon. and hon. Friends on the Opposition Front Bench please not to acquiesce to the red lines. The fact that the Government have set them does not necessarily mean that they are correct. I want the Labour party to fight for permanent access to and membership of the single market, and I will not stop making that point.

New clause 2 might look a bit lengthy, but it sets out what we should hope to expect to see in the withdrawal agreement that is currently being negotiated by the Prime Minister and the European Commission. I think that a lot of people expected, having passed phase 1, that this was going to be the moment to talk about trade and the sort of deal we were going to get. That is not where we are in the negotiation. We have entered a period of talks about talks—that is simply where we are in this phase 2 arrangement. The article 50 process specifies that, after we have buttoned down a transition arrangement—I shall come to that in a minute—we can perhaps hope to get a framework for our future relationship. That could easily be a single side of A4 with very warm words saying, “Let’s all work together,” and we would then be supposed to depart on our one-way journey without knowing for sure where we were heading.

European Union (Withdrawal) Bill

Debate between Hilary Benn and Chris Leslie

Committee: 6th sitting: House of Commons
Tuesday 12th December 2017 Commons Chamber

[Mr Leslie]

Indeed. There are, I think, eight pieces of subsequent legislation which are also opening up this precedent. Effectively, Members of Parliament are being patted on the head and told, “Do not trouble yourselves. We will sort out all these areas of policy. We will just go away and if you really object, you can petition us about it.” That is not good enough.

Let me now turn to clause 9. We are not voting on it today, but the grouping of the amendments allows us to discuss issues relating to it. Subsection (2) states:

“Regulations under this section may make any provision that could be made by an Act of Parliament (including modifying this Act).”

If, having gone through all the rigmarole of debating the proposals that are before us today and made all sorts of promises, Ministers then say, after Royal Assent, “Actually, we did not like that bit of the Act”, they will be taking order-making powers to amend this very provision.

[Hilary Benn (Leeds Central) (Lab)]

It is not just a question of assurances given from the Dispatch Box. In clause 9, Ministers are proposing to take a power that would enable them, after the event, to get rid of what they have described as safeguards in the Bill if they feel like it, by means of the mechanisms provided in that clause. Does that not undermine the confidence that the House can have in those safeguards, given that they may no longer be in the text of the Bill when it becomes an Act?

[Mr Leslie]

It is almost an Alice in Wonderland “down the rabbit hole” concept: the notion that we are passing an Act that hands powers to Ministers to amend not just any other Act of Parliament, but the Act itself. It is completely ridiculous. I know that Conservative Members will say I am making the point because I am sceptical about Brexit or something, but this is a constitutional issue. It is about ensuring that Parliament is sovereign, and that Members of Parliament can override the executive and curtail excessive behaviour. I shall be astonished if clause 9(2) is still there after Royal Assent, because if the House of Commons does not deal with it, the other place will certainly have to do so.

European Union (Withdrawal) Bill

Debate between Hilary Benn and Chris Leslie

Committee: 3rd sitting: House of Commons
Tuesday 21st November 2017 Commons Chamber

[Mr Leslie]

It turns out that the charter does have value, and it certainly does have effect within the UK. I will shortly give some practical examples to show how we cannot simply airbrush this part of our current legislative framework. Many citizens, companies and organisations recognise the value that the charter brings.

[Hilary Benn (Leeds Central) (Lab)]

Is not an example of the use of the charter of fundamental rights the one given by our right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) when he referred to the case that the EU brought against the Government, in which the current Secretary of State for Exiting the European Union, as part of his argument, prayed in aid the charter. If the Secretary of State thinks that it has use, should not that same use be available to everybody else?